THE HARMONIZATION OF
FEDERAL TAX LEGISLATION

Endnotes

  • * The author takes this opportunity to thank Me Karl Chemsi, Sandra Hassan and Louis L'Heureux, for their valuable contribution to the drafting of this document, as well as Me Marie-Claude Gaudreault, Marie-Claude Gervais and Joseph Sirois for their collaboration to its review.

  • [1] Process by which the Quebec government aligns its tax measures on those of the federal government by making the required adjustments.

  • [2] Harmonized Sales Tax: refers to the replacement, by a single harmonized tax on added value, of the retail sales taxes of Nova Scotia, New Brunswick, Newfoundland and Labrador, as well as the federal Goods and Services Tax in these provinces.

  • [3] Department of Justice Canada, Backgrounder "A Bill toharmonize federal law with the civil law of the Province of Quebec" (accompanying the press release issued when Bill S-22 A First Act to harmonize federal law with the civil law of the Province of Quebec and to amend certain Acts in order to ensure that each language version takes into account the common law and the civil law was tabled, 11 May 2000).

  • [4] Note: the term immovable is already used in the Excise Tax Act.

  • [5] J.-M. Brisson and A. Morel, "Federal Law and Civil Law: Complementarity, Dissociation", in The Harmonization of Federal Legislation with Quebec Civil Law and Canadian Bijuralism, Collection of Studies (Ottawa: Department of Justice Canada, 1999) at 246.

  • [6] Ibid. at 246. On the subject of collection, the I.T.A. contains many specific provisions for particular rules of enforcement, which has led the courts to conclude that in matters of collection, the I.T.A. is a self-contained code. In this connection, see the Marcoux decision discussed under the following topic.

  • [7] R. v. Lageux, 74 D.T.C. 6569 at 6572 (F.C.T.D.). See also comments of Justice Bastin (in dissent) in Kingsdale Securities Co. Ltd. v. M.N.R., 74 D.T.C. 6674 at 6692 (F.C.A.) [hereinafter Kingsdale Securities].

  • [8] 80 D.T.C. 6184 (F.C.T.D.) [hereinafter Olympia and York].

  • [9] Ibid. at 6187.

  • [10] Ibid. at 6189-6190.

  • [11] 60 D.T.C. 554 (T.A.B.).

  • [12] Ibid. at 556-557.

  • [13] 98 D.T.C. 6501 (S.C.C.).

  • [14] 62 D.T.C. 1005 (S.C.C.). See also Côté v. R., 99 D.T.C. (F.C.A.); Dumais v. M.N.R., 89 D.T.C. 5543 (F.C.T.D.).

  • [15] 99 D.T.C. 5458 (F.C.A.).

  • [16] Ibid. at 5461-5462.

  • [17] 83 D.T.C. 5365 (F.C.A.). See also, for example, Boger Estate v. R., 91 D.T.C. 5506 (F.C.T.D.).

  • [18] 90 D.T.C. 6237 (F.C.T.D.).

  • [19] Brisson and Morel, supra note 5 at 257-258.

  • [20] 99 D.T.C. 5034 (S.C.C.).

  • [21] Ibid. at 5057.

  • [22] Gervais v. R, 85 D.T.C. 5004 (F.C.T.D.).

  • [23] Ibid. at 5008.

  • [24] 2000 D.T.C. 6010 (F.C.T.D.). This judgment has been appealed.

  • [25] MRQ v. Marcel Grand Cirque Inc., 98 D.T.C. 6565 (F.C.T.D.).

  • [26] 99 D.T.C. 5136 (F.C.T.D.).

  • [27] Ibid. at 5145.

  • [28] 99 D.T.C. 5841 (F.C.A.) [hereinafter Bérou].

  • [29] Olympia and York, supra note 8.

  • [30]59 D.T.C. 5194 (Ex. Ct.).

  • [31] Id., p. 5844.

  • [32] 71 D.T.C. 688 (T.A.B.).

  • [33] Ibid. at 690-691.

  • [34] Michel Bastarache, "Le bijuridisme au Canada" (Lunch and Learn workshop on bijuralism and judicial authority, Department of Justice, Ottawa, 4 February 2000).

  • [35] Bill C-43, An Act to amend the Income Tax Act, the Income Tax Application Rules and certain Acts related to the Income Tax Act, 2nd session, 36th Parl., 1999-2000 [hereinafter Bill C-43].

  • [36] See new subsection 104(1) of the I.T.A. and the explanatory note, published June 12, 2000, which reads as follows:

    "One of the amendments to the subsection is the addition of "liquidateur de succession" to the list of persons deemed to be trusts or estates pursuant to the Act. The amendment aims to ensure that the Act reflects both the Quebec civil law and the law governing the other provinces"

  • [37] The reasons for the change are fully explained in the section dealing with terminological obsolescence.

  • [38] See new paragraph 107.4(1)(e) of the I.T.A.

  • [39] The reasons for the change are fully explained in the section dealing with the neutral or generic term.

  • [40] See new clause 108(2)(b)(iii)(D) and subsection 248(1) "disposition", subclause (b)(i) and paragraph (l) I.T.A., and the explanatory notes to these provisions.

  • [41] The reasons for the change are fully explained under the heading Doublet.

  • [42] See, among others: Jean-Pierre Bonin and Julie Lebreux, "Les fiducies et les récentes modifications législatives applicables aux fiducies personnelles (legislative proposals of December 23, 1998, and the Federal Budget, February 16, 1999)", in Colloque 88La fiducie : le véhicule fiscal du nouveau millénaire (Montreal: APFF, 2000); Diane Bruneau, "La rétroactivité des contrats en droit civil-impact fiscal", (1991) 39:3 Can. Tax J., at 536; Guy Fortin, "Economic Reality Versus Legal Reality; Planning for Trusts: Deemed Dispositions on January 1, 1999; Subsection 107(4.1) of the Income Tax Act" (1996 Tax Conference, CTF, 1997) 5:1-39; Jean‑Marie Fortin, Catherine La Rosa, "Partage des biens en cas de dissolution", in Congrès 1996 (Montreal: APFF, 1997) at 8:1-86; Bernard Goulet, "Amortissement fiscal : vue d'ensemble", (1995) 17:1, Revue de planification fiscale et successorale, at 13-82; Luc Martel, "Mise à jour sur l'exonération du gain en capital", in Congrès 1992 (Montreal: APFF, 1993) at 591-670; Pierre Martel, "Acquisition de contrôle d'une corporation : analyse de concept", in Congrès 1993 (Montreal: APFF, 1994) at 8:1-31; Michael Mcauley, "Storm Clouds over Quebec Trust Law" (1994 Journées d'études fiscales — La planification successorale, CTF, 1995) T.A.B. 1; André Morrissette, "Fiducies", Colloque 63 — Réforme du Code civil et son impact sur l'impôt sur le revenu (Montreal: APFF, 1993); Maurice Régnier, "De la morosité", (1998) R.ATF.S. 20:1; Manon Thivierge, "Forclusion d'hypothèques et reprise de biens", in Congrès 1996 (Montreal: APFF, 1997).

  • [43] Maurice Régnier, "De la morosité", Revue de planification fiscale et successorale, volume 20, no. 1, Montreal, APFF, 1998.

  • [44] In the matter of the Income Tax Act et al. v. Les Entreprises Forestières P.S. Inc. and Newcourt Financial Ltd., 20 September 2000, A.-1223-00 (F.C.T.D.).

  • [45] See the new definition proposed in subsection 123(1) of the Excise Tax Act (Bill C-24, An Act modifying the Excise Tax and a Related Act, the Bankruptcy and Insolvency Act, the Budget Implementation Act, 1997, the Budget Implementation Act, 1998, the Budget Implementation Act, 1999, the Canada Pension Plan, the Companies' Creditors Arrangement Act, the Cultural Property Export and Import Act, the Customs Act, the Customs Tariff, the Employment Insurance Act, the Excise Act, the Income Tax Act, the Tax Court of Canada Act and the Unemployment Insurance Act, 2nd session, 36th Parl., 1999-2000 (passed by the House of Commons and submitted to the Senate for adoption).

  • [46] For example: sections 122.61(4); 223(5); 13(21.2)(c); 74.5(7); 79(3); 94(6); 96(2.2)(f); 224(1.3) I.T.A.

  • [47] See The Royal Bank of Canada v. The Queen, [1999] 2818 E.T.C.

  • [48] Supra note 42.

  • [49]See sections 96 ff of the I.T.A.

  • [50] Subsection 102(1) of the I.T.A. defines the concept of "Canadian partnership" without however actually providing a definition of "partnership".

  • [51] Revenue Canada, Interpretation Bulletin IT-90, "What is partnership?" (9 February 1973); M.N.R. v. Strauss, [1960] C.T.C. 86 (Ex. Ct.); Cole v. M.N.R. [1964] C.T.C. 219 (Ex. Ct.); Northern Sales (1963) Ltd. v. M.N.R., [1973] C.T.C. 239 (F.C.); Derby Development Corp. v. M.N.R., [1964] Ex. C.R. 78; Graves v. Her Majesty the Queen, 90 D.T.C. 6300 (F.C.T.D.).

  • [52] See art. 2186 C.C.Q.

  • [53] Partnerships Act, R.S.O. 1990, c. P-5, s. 2.

  • [54] Under the Nova Scotia Companies Act, R.S.N.S. 1989, c. 81, it is possible to set up a joint stock company.

  • [55] Nicole Prieur, "Règles fiscales affectant les sociétés de personnes", (1998) 20:2 Revue de planification fiscale et successorale 305‑409, at 314.

  • [56] [1996] R.J.Q. 1566 (C.A.).

  • [57] Charles P. Marquette, "Les sociétés de personnes — Aspects civils" (1998), vol. 20, no. 2, Revue de planification fiscale et financière, CD-ROM: La Collection APFF (North York: CCH, 2000).

  • [58] Ibid.

  • [59] (12 December 1998) 450-02-000281-892, REBJ 98‑11410 (Côté J.C.Q).

  • [60] Ibid., at 2.

  • [61] Charlaine Bouchard, "Le fondement du patrimoine autonome des sociétés de personnes", (1996), Cours de perfectionnement du Notariat, no. 2, at 31-53.

  • [62] See definition of "taxpayer" in subsection 248(1) of the I.T.A.

  • [63] Prieur, supra note 56.

  • [64] Revenue Canada, Interpretation Bulletin IT-464R "CCA—Leasehold interests" (25 October 1985), par. 3: "A leasehold interest is the interest of a tenant in any leased tangible property. A tenant who leases property acquires a leasehold interest in that property regardless of whether or not any capital cost is incurred in respect of that interest. However, a depreciable property is not considered to have been acquired until a capital cost has been incurred in respect of that property. It is necessary to determine with regard to certain apparent leasing agreements, whether these agreements are in substance leasing agreements or agreements either for the purchase of the property or for loans…."

  • [65] Revenue Canada, Interpretation Bulletin IT-324 "Capital cost allowance—Emphyteutic lease" (25 May 1976).

  • [66] François Frenette, L'emphytéose, in Chambre des Notaires du Québec, Répertoire de droit Nouvelle Série, Volume 1, Biens—
    Doctrine — Document 1, at 31.

  • [67] See, among others, Queen v. Lagueux & Frère Inc, 74 D.T.C. 6569, at 6572 (F.C.T.D.); Kingsdale Securities, supra note 7 at 6692; Olympia and York, supra note 8 at 6187.

  • [68] 87 D.T.C. 5026 (F.C.A).

  • [69] [1946] C.T.C. 51 (C.S.C).

  • [70] [1891] A.C. 531 (H.L.).

  • [71] Canadian Bar Association, Dictionnaire de la Common Law : Droit des biens et droit successoral/Canadian Common Law Dictionary: Law of Property and Estates (Cowansville, Que.: Yvon Blais, 1997).

  • [72] Interprétation technique 98-0102933 — Fourniture de droits d'amarrage saisonniers, online: CCH Tax Works (29 September 1998).

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